Miami Heat sponsors cash in on Conference Finals

June 4, 2012|By Doreen Hemlock

SunSentinel

For many Miami Heat sponsors, these are the gravy days.

With the Heat making the Conference Finals — and hopefully, the National Basketball Association Finals — the team's sponsors enjoy extra exposure at no extra cost. They generally pay per season, however long it lasts, sports marketers say.

Each sponsorship deal is different, and contracts are confidential. But experts say the bulk of Heat deals run between $100,000 and $500,000. Some cost less, partly because of relationships forged before LeBron James and Chris Bosh joined. And some cost more for a broader partnership, with more media.

Sponsors tend to have two goals: to get their names out to fans, many with disposable income, and to score game tickets as perks to give their suppliers, employees and customers.

"Who wouldn't want to come to Miami and see the Three Kings play?" asked Lori Medici, vice president of marketing for Miami-based apparel maker Perry Ellis, a Heat sponsor since 1999.

The deals work like this: A company signs up to partner with the team for a season or multi-year. For example, Kia becomes "the official vehicle of the Miami Heat." A contract spells out details: what kind of game tickets; how much access to luxury suites; what signage at the arena; how much exposure in print, broadcast, websites and social media; and even which players might visit their stores or offices.

"If I get Shane Battier to come over and say something about the shoes I sell, it will be a lot cheaper than LeBron James doing it," said Anthony Cangelosi, manager of brand marketing at Sports Management Research Institute, based in West Palm Beach.

Teams like sponsorships because they can keep all or nearly all the money. In contrast, sales of tickets, merchandise and TV time generally require sharing revenue with the NBA. And sponsors help build community ties, strengthening the fan base and stocking future sales, experts say.

Heat sponsors now range from the Barbados Tourism Authority to Hublot watches and Walgreens pharmacy, and more companies could seek out deals to ride the team's popularity next season.

"There's no limit. It's all about being creative and breaking through the clutter," said Scott Becher, managing director for sports and entertainment at Zimmerman Advertising in Fort Lauderdale.

Here's how four sponsors make the deals work for them:

Perry Ellis: For this South Florida apparel company, sponsorship centers on getting their clothes on Heat players, Heat dancers, arena ushers and Heat fans. When the AmericanAirlines Arena opened in 1999, the company outfitted all the ushers in guayabera shirts — in the colors of each seat section. A recent Heat poster had the team wearing Perry Ellis clothes. And the popular Noche Latina or Latin Night promotion at the arena tossed out its Cubavera tops to crowds instead of T-shirts.

"For us, it's all about product placement," said vice president Medici. The company also has outfitted broadcast staff and cheerleaders, and hosted Heat players to its stores to autograph basketballs.

Duffy's Sports Grill: For this Palm Beach Gardens-based restaurant chain, sponsorship means above all, getting Heat tickets for its customers. The chain has a loyalty program and gives away the tickets to top customers and in contests, said owner Paul Emmett.

Duffy's also works with the Heat's marketing team to host events at the restaurants for games on the road. In April, the chain offered a Heat cupcake for a $1, with 50 cents donated to the team's charitable foundation. That raised $10,000 for the charity — a sign of how customers enjoy the Heat, said Emmett.

A sponsor since 2011, Duffy's pays more than $100,000 per season but has no signage at the arena — just regular season tickets and the chance to tell the public it's "the official Heat sports grill," Emmett said.

Party City: For this national purveyor of party supplies, sponsorship comes with a deal for the team to buy a comparable amount of goods at its stores or from its parent company Amscan, from plates for events to noisemakers for crowds.

"It's a real win-win, because the team needs to buy this merchandise anyway," said Becher, who heads the sports and entertainement segment of Party City's account for Zimmerman Advertising.

Stores set up "Fan-rageous" sections, which recently dressed Heat fans all in this year's Conference Finals, suggested white-clothes style. Plus, the chain gives gift certificates to the most outrageous Heat fans at the arena to keep the party going.

Assist-Card: When this veteran European travel insurance provider entered the U.S. market in 2009, it wanted to do something big and bold to show it was a serious player in its industry. Its decision: Spend millions of dollars to become a multi-year "presenting sponsor" for the Heat. That puts its name virtually everywhere on Heat materials, from game programs to the giant media screen outside the arena.

Assist-Card set up U.S. headquarters in Miami, because the city's an international travel hub and home to cruise companies, travel agencies and more. It chose an NBA team to sponsor, because pro basketball is the most global of the major U.S. sports, said Jason Schreir, vice president of sales and marketing.